Jabil acquires Celetronix

"India has a growing domestic economy and is well-known for engineering services. We believe India will become an increasingly important location to support hardware development and manufacturing for export to the global market. The complementary capabilities of Celetronix will make us the dominant provider of services to and from this important emerging market," said Jabil's President and CEO, Timothy Main. "We are excited to become part of Jabil, the premier EMS company in the world. With Jabil's support and expertise, we will leverage our existing relationships to make India a leading manufacturing center for the India market and electronics exporting," said Celetronix CEO Jugi Tandon. Celetronix provides design and manufacturing services to customers in the consumer, computing and storage markets. The acquisition will add 5,750 employees and 270,000 square feet of manufacturing space in three locations: Mumbai, Chennai and Pondicherry. Jabil currently manufactures in 176,000 square feet in Ranjangaon, India. As previously disclosed in Jabil's quarterly and annual filings with the Securities & Exchange Commission, Jabil loaned $25 million to Celetronix in fiscal 2005 in exchange for an option to purchase 100 percent of the shares of the company. The incremental purchase price for the acquisition is expected to be approximately $155 million plus the assumption of approximately $30 million of net debt. The Company said, subject to certain governmental approvals and Celetronix shareholder approval, it currently anticipates the acquisition to be final during March 2006.